Notification/Circular No. – Circular No. 20/2025-Cus. dated July 24, 2025
Applicable Act/Rule – Customs Act, 1962; Foreign Trade Policy, 2023
Trade bodies had raised concerns over delays in clearing DFIA imports due to insistence by Customs authorities on establishing detailed correlations between imported inputs and export products even when such correlation wasn’t mandated under the Foreign Trade Policy.
CBIC has clarified that technical correlation between imported inputs and export products is only required for items listed under Paragraph 4.29 of FTP 2023. For these 22 specified inputs, exporters must declare quality, specifications, and technical characteristics in the shipping bill.
However, for inputs permitted under Paragraphs 4.12 and 4.28(iv)—which allow for generic or alternative inputs under SION only the name and quantity of the specific input used needs to be declared. There is no requirement to correlate technical characteristics in these cases.
Field formations have been advised to issue suitable public notices and standing orders for trade guidance and internal consistency in implementation.
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